[BANGKOK] Thailand’s annual headline consumer price index rose for a third straight month in September, beating forecasts, government data showed on Monday, but the rate was still below the central bank’s target, giving it room to keep monetary policy loose to aid growth.

Headline consumer price index increased 0.86 per cent in September from a year earlier, after a 0.32 per cent rise in August. A Reuters poll projected a rise of 0.45 per cent in September.

The Bank of Thailand (BOT) has forecast 2017 headline inflation of 0.6 per cent , below its one to 4 per cent target range.

The BOT left its policy interest rate unchanged at 1.5 per cent last week, shrugging off calls from the government and businesses for a cut to contain the baht’s strength. The rate has been at that level since April 2015.

It next reviews monetary policy on Nov 8, and most analysts expect no change for the rest of 2017.

The core CPI index, which excludes raw food and energy prices, rose 0.53 per cent in September year-on-year, slightly higher than the poll’s median of a 0.5 per cent increase.

In the January-September period, headline CPI rose 0.59 per cent from a year earlier and the core index increased 0.54 per cent.

Inflation in Thailand has also been contained by state price controls, subsidies and soft domestic demand.